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RENKO 5 Pip box Strategy


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I have been interested in Renko for a long time but never found a system that satisfied me.

On YouTube there are a few videos for 2, 3, 4 brick sizes as well as indicators.

Now indicators are always well behind the price action as they are based upon PA and watching the videos I found that the PA methods are usually a two box change of direction. It is all a bit 'lucky dip' because we do not know what will happen next. We hope that the 2 box will become 3 boxes and make us some pips.

 

One of the rules is to trade the UK and US opens; Reason being that is when there is a lot of action.

 

I have looked at the last few days and seen that by taking a chance 'blindly', I could have made a few wins.

 

So, I will post this week's charts for you to see. Feel free to comment.

 

BTW, I am in Bulgaria where the demo that I am using has 10am as the London open -8am GMT.

Edited by Freddie
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Monday

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/R5Monday1308.jpg

 

There was a good Asian Session trade. I have not included that on this chart but will add it if anyone is interested. Might even open another thread for the Asian Session.

 

The London open gave a buy which backtracked then a buy that worked. Although I have marked the trades to their extremeties, some of the videos only go for a 9 to 12 win.

Edited by Freddie
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Tuesday - Another good Asian Session.

London Open brought another trade depending on how we saw the Asian move. Do we just follow on and get a 5 pip retracement followed by the win? Do we wait for the break above the 10am retrace?

Later there is a sell that continued to late

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/R5Tuesday1408.jpg

Edited by Freddie
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Friday:

I will post picks of the live activity of the chart

First 0530 GMT an opportunity for Asian Session sell. Sell at line, retrace and then 10 or 12 pips available.

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/R5Friday1708a.jpg

 

10am and we have a buy signal

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/R5Friday1708b.jpg

Edited by Freddie
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134 views but not a single comment!! Ah well, it serves to make me think about the system.

 

The new week starts and with it a new idea....OK, so not a new idea but what might be a reasonable one.

We only go for 10 pip wins. We take a two brick signal and take profit when 10 pips are made.

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/SLTP.jpg

 

Asian Session:

Monday opened with a continuance of Friday's upward move. Best ignored, I think.

Next there was a two brick move down so a sell initiated. This went 5 pips and reversed for two blue bricks, a 10 pip loss.

The two blue bricks were also a buy signal and a 10 pip win.

Edited by Freddie
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Asian Session finishes with another two 10 pip wins: Green Line is London Open.

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/AS.jpg

 

I am wondering how I might have made the second trade a 15 pip win. Just in case anyone thinks that this will actually work easily, I would remind you that it is necessary to watch the blocks and to open or close the trade ASAP. There may well be moves altering the actual pips won or lost.

 

Waiting for London session!!

Edited by Freddie
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Interesting thread, Freddie. Thanks for the sharing and the efforts of explaining and showing actual trade examples. I will be following this thread. Thanks.

 

You are most welcome Duke.

I have been busy today so did not have the time to post the session trades. Not that they were anything other than straight forward.

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/Mon21-1.jpg

 

London, straight sell and New York, straight buy.

I am thinking that a 'move by mouse' stop loss would be a useful tool here.

Edited by Freddie
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For anybody wondering why there is so little movement around the change of day, ie from Monday to Tuesday above, here is a 5 minute chart with the 5 pip Renko bricks marked.

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/AsianSession.jpg

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US session continued to rise through the Asian Session. We had a retrace which would have cost us 10 pips of the move up, took us into a sell which then reversed into a 10 pip loss in the London open.

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/ASLO.jpg

Edited by Freddie
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Discontinuing the thread. Over 400 views and only one comment.

 

Running the thread has forced me to pay close attention to the price action and I am happy with what I have found. I will now run it on demo ready to go live.

 

Bye bye!

 

Sorry to hear that you are discontinuing the thread, Freddie. For what is is worth, I did enjoy reading your thread.

 

I did not make many comments, mainly because

 

(1) I do not wish to "interrupt" too much your thread's sense of continuity of example trades from one day to the next. The thread as it stands is easy to read like a tutorial by trade examples. So I did not wish to add "noise" by simply posting for the sake of posting comments.

 

(2) Also, I do not like to post if I do not either have something worthwhile to add, or do not have some questions specific to posts in the thread. And your explanation as well as chart examples are so clear (at least to me) that I did not have any specific questions I needed to ask.

 

Anyway, no matter what, thank you again for your sharing spirit, I know it does take time and efforts to produce a thread like this. And I did enjoy reading this thread while it lasted.

 

Cheers. Perhaps will see you in other threads or posts again.

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Sorry to hear that you are discontinuing the thread, Freddie. For what is is worth, I did enjoy reading your thread. ....Cheers. Perhaps will see you in other threads or posts again.

 

Thank you for that, Duke. What I found was that if I used a 'move sl by mouse' I should be able to trade this method day after day.

 

I was not put out that nobody commented, I just thought that it was so straight forward that nobody needed help.

 

Today's chart shows losses.

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/2308AL.jpg

 

Oops, sorry, no explanation...I will repost

Edited by Freddie
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As I am getting ready to post the live chart is hovering around a 20 pip win on the right side of the screen...no, 30 now and rising!!

 

Here is the above chart with the win/lose notes.

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/2308AL-1-1.jpg

Edited by Freddie
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My suggestion is just try to add grid freddy.....Set for 25 pips, for 5 digit broker set 250...

hxxp://xxx.4shared.c0m/rar/YuxssiOQ/Desktop_3.html

 

Thanks, Roels, I have done that but what do I do with it?

Is it one of those systems where we trade from one Grid Line to the next?

 

Here is the current chart with the Grid in place:

 

http://i251.photobucket.com/albums/gg299/phreddyinbg/5piprenko/25Grid.jpg

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Freddy always like your stuff just have one question how big is the Renko brick and what is the rule to entry and exit ?

 

Brick size is 5 pips

Strategy 1 is enter when there are 2 bricks changing the trend; exit with 10 pip win; wait for next change of direction. Post 17 would have lost 20 and won 50 making 30 for the day. I have not marked that strategy but the next one.

 

Strategy 2 is to use a 15 pip SL. Post 17 shows the result, the first three red brick is a sell on brick 3 but that reverses with 2 blue bricks making a buy that makes 30 pips.

 

Is that clear?

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Not gonna work you need to increase your profit then you might have a change on the long run. You dealing with spread and slippage and not to say the last 1 renko painting momentum can go faster or slower the renko thing is just programmed to paint a bar when price moved 5 pips for example it prints a box but the speed and velosvity is always different or you most automate it. Or be superfast on the keys and sit like a speed junk in front of your screen you gonna burn out soon ennough and your emotions will take a toll. But rather do it on a large renko box size and increase your profit potential and make your sl what wider so you not exposed to volatilty that much. the do someting like triple screen 1 for dailly trend renko box size..... 1 4hr renkoboxsize.... Then place sellstops or buystops on the peaks or valleys or trendline or whatever.. But to find right parameters might take time and effort and not sure if it is worth it the mechinical aproach i never did really much in renko.

Had made 1 for crude in renko it worked for some time but found out that in the long run it had not good performance and to large drawdowns but if you dont have problems with that maybe something to look at..

 

JJ

 

But thats just my point anyway good luck jj

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Not gonna work you need to increase your profit then you might have a change on the long run. You dealing with spread and slippage and not to say the last 1 renko... But rather do it on a large renko box size and increase your profit potential and make your sl what wider Had made 1 for crude in renko it worked for some time but found out that in the long run it had not good performance and to large drawdowns but if you dont have problems with that maybe something to look at..JJ But thats just my point anyway good luck jj

 

Thanks for the input JJ. Yes I understand.

 

I had watched a series of strategies on YouTube with 2, 3 and 10 pip bricks. The aim seemed to just play the current trend for a small win hence my 10 pips and out demonstration.

On Monday I will start a demo for the day. I say day because I often wake at 0500 here which is 0300 GMT. Asia is slow so I may start a trade, add the SL and go to bed again.

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thanks for maintaining this thread Freddie :)

 

anybody has the indicator or script to create range bar chart on Mt4?

 

www.4shared.com/rar/DkdzhqEN/CRB.html

 

synbar is an indicator and the other one is an ea

didn't use them for trading so far

 

I'm interested in the constant distance bar ea (RenkoPaul_c_)

I only have the .ex4 but I need the .mq4 because the ea has a severe bug

Would be nice if someone could help me here

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